Biocides are substances extensively used across the agriculture and livestock sectors to prevent the proliferation of bacteria, algae, fungi and viruses. With sharpening regulations, environmental concerns, and the need for sustainable practices to ensure continued agriculture and food supply, the market is witnessing increased demand for safe and sustainable products, while maintaining demanding requirements in cost, scalability, and availability.
HPGen is a disruptive technology product, enabling for the first time on-demand, cost effective production of hydrogen peroxide - an eco friendly biocide and oxygenator, directly at the point of use, and requiring only water, electricity and air as feedstock ! With HPGen, HPNow is set to displace presently used, increasingly regulated toxic chemical products in agriculture and in turn the livestock sectors. By doing so, HPNow will:
- Save up to 50% in farmer costs vs. present day solutions.
- Increase crop yields through more homogenous irrigation and improved oxygenation.
-Enhance food and water safety.
-Reduce excessive antibiotics and drugs feeding to livestock
- Reduce the environmental impact, transport and handling of toxic agri-chemical agents.
- Create a > €2B multi-billion opportunity across its value chain.
HPGen is a first of its kind solution for the on-site, on-demand production of hydrogen peroxide (H2O2). Hydrogen peroxide is a well-known, highly effective oxidation agent, and also a well known oxygenator, proven to secure oxygen supply to oxygen-deprived plant roots. To date however, its impact in the agriculture and livestock sectors has been minimal. Hydrogen peroxide is produced today through the century-old Anthraquinone method, which can only be effectively implemented in large-scale chemical plants. The chemical is in turn packaged in high-concentrate (35% to 70%) drums, which are explosive and require special handling and storage. Its current use in agriculture and livestock requires the challenging and costly distribution of relatively small quantities of highly concentrated solutions to remote locations, and dilution to ppm-levels at the point of use. Accordingly, despite its attractive properties, use of hydrogen peroxide in agriculture and livestock farms has been very limited.
HPNow is addressing these pain points through its breakthrough technology enabling H2O2 generation on-site, on-demand, and requiring only water, air and electricity as feedstock. The HPGen solution directly yields the low concentrations required in an intrinsically safe process, altogether bypassing the storage and safety concerns associated with high concentration H2O2 solutions. Cost projections indicate a 50% cost reduction as compared to existing products and methods. The wide availability of an on-demand H2O2 generation solution will dramatically broaden its use as a safe and eco-friendly biocide, as well as a potent oxygenator, providing for more sustainable and safe practices, healthier plants and animals, and increased yields.
Our main conclusions from this feasibility study are as follows:
- There is strong market demand for the HPNow’s offering.
- The direct market potential is very substantial – EUR 1.5 billion and above.
- Industry trends, including regulatory environment, play in our favour.
- We have a strong first mover advantage which can be leveraged.
- We have successfully established the foundations of our go to market strategy, through partnerships with key stakeholders across the value chain.
- Our financial model provides for strong IRR.
Based on these conclusions we intend to pursue the HPNow business plan and we are accordingly preparing an application for SME phase 2 for the October 13th 2016 timeline.
